Forestry businesses form strategic alliance in Gisborne

The move has been prompted by the harvest of Forest Enterprises' investors' forests in Gisborne which begins this summer. Harvest volumes are expected to reach 1 million tonnes a year for several years.

As part of the alliance, Forest Enterprises will take a shareholding in Logic and have a director on the company's board.

"Our two companies have worked closely together for four years. This is a logical extension of our excellent working relationship and is an efficient way for us to manage our Gisborne harvest," says Forest Enterprises Managing Director Steve Wilton.

Until now, he says Logic has been contracted to undertake harvest planning work in Forest Enterprises' Wairarapa and Gisborne forests. More recently it has been engaged to prepare resource consent applications and related pre-harvest work for the company's 10,500 hectare Gisborne forest estate.

"We had considered setting up our own Gisborne office to oversee our harvest operations in the region. Then we realised that partnering with Logic was a better solution. They are an existing business partner with complementary skills and a similar business culture, with a skilled team of five forestry people already in Gisborne," Mr Wilton says.

"Harvesting contracts will still be directly with Forest Enterprises. We will also manage all Gisborne log sales as an extension of our existing Wairarapa harvest programme which now stands at 300,000 tonnes a year and growing."

Logic Forest Solutions Managing Director Richard Smith says the alliance is a great opportunity for both companies.

Logic offers a range of services to forest growers including, harvest planning, forest inventories and the supervision of silviculture and harvesting activities.

Forest Enterprises, which was established in 1973, is one of the country's largest forest investment companies. It manages 73 production forests in Wairarapa, Hawkes Bay and Gisborne – a total of 21,500 hectares owned by 6400 investors. Its role as an investment manager includes managing forest planting, harvesting and log marketing.

The alliance with Logic brings to an end the long-standing business relationship between Forest Enterprises and Kohntrol Forest Services which has supervised the company's Gisborne forests since Forest Enterprises came to the region in 1993.

"A recent review by both companies resulted in each of us choosing to go in separate directions. The team at Kohntrol has provided us with an excellent service and I wish them the best for the future," says Mr Wilton.